Home Forex DJT is down 4% as conviction takes its toll

DJT is down 4% as conviction takes its toll

by SuperiorInvest
  • Shares of Trump Media are trading 4% lower after premarket gains.
  • Donald John Trump was convicted on Thursday of 34 felony counts of falsifying business records.
  • A New York state jury was unanimous on all counts against the former president.
  • Support for DJT stock is near $42 if the stock breaks out of the $45 to $50 consolidation zone.

Trump Media & Technology Group (DJT) shares fell 4% on Friday following Thursday's post-launch condemnation of namesake Donald John Trump, the former US president.

A New York state criminal grand jury case involving falsifying business records to pay off a porn star with whom Trump had an affair has handed Donald Trump 34 felony counts and sentencing is scheduled for July 11. Shares of DJT were down 8% on Friday's premarket rally after the launch on Thursday.

The NASDAQ fell 1.1% on Friday morning despite the Fed's ( Fed ) preferred inflation survey — the Personal Consumption Expenditures (PCE) report — coming in lower than expected for monthly core inflation.

Trump Media stock news

Scholars generally believe that Trump will serve no time for his conviction. If they do, it would likely reduce the value of the Trump Media & Technology Group-owned TRUTH Social app.

These felonies are Class E, which is the lowest level of felony in the New York state justice system. The punishment can include up to four years in prison. But the legal opinion expects Trump to face parole and fines rather than serve time in prison because he is a first-time offender.

Needless to say, Trump will continue to run for president. But if he wins, he won't be able to throw out the state case because presidents can only grant pardons for federal crimes.

Trump's political supporters are determined to call the conviction a “miscarriage of justice.” Social media is full of posts like the following:

Post taken from X Social Media (formerly Twitter)

Trump Media Stock Forecast

DJT shares continue to trade in the $45-$50 range, where there has historically been ample support, at least in its short history as a public company. If DJT breaks below this range, then the recent support at $42 may work again.

Shares of Trump Media touched both the 9-day and 20-day exponential moving averages (EMA) in Friday's session, but also resulted in a range as high as $53.92. Any return to the territory above $55 is a sign that the rally is back in play.

Daily DJT stock chart

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